Rents to Riches? Factoring in the Political Economy of Natural Resource-Led Development
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Subsoil natural resource endowments and associated rents --if well harnessed and managed--can serve as a boon to developing countries. Yet, too often, the extractive industries of oil, gas, and mining have been associated with the "resource curse" whereby nations that are more dependent on nonrenewable natural resources grow more slowly than resourcepoor countries and often suffer from weaker governance and institutional quality.i In many developing countries, natural resources are the main game in town--and the extractive industries sector is both shaped by and, in turn, influences political, economic, societal, and institutional dynamics. Understanding the political economy of resource rents is therefore crucial to achieving sustainable development built on resource riches.
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The Rentier State at Work: Comparative Experiences of the Resource Curse in East Asia and the Pacific Barma, Naazneen H. (2014);Countries rich in natural resources do not all experience the resource curse in the same way. The rentier state logic holds that the main political–economic impacts of resource dependence rest on how the state handles windfall ...
Barma, Naazneen H. (Philadelphia, Pennsylvania: University of Pennsylvania Press, 2012);Contemporary political economy research suggests that whether a country falls prey to the resource curse depends on a number of structural and economic factors. The cumulative body of large-N analyses of resource-rich ...
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